Energy group INEOS, which holds fracking licenses over approximately 400,000sq km of land in Scotland, is seeking a judicial review on the Scottish Government's effective ban on the extraction of shale gas.

Together with its co-venture partner, Reach, INEOS has lodged a petition based on what it believes were "very serious errors" in the decision-making process. The energy group claims this includes "a failure to adhere to proper statutory process and a misuse of Ministerial power".

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Energy minister Paul Wheelhouse revealed the move to outlaw the controversial extraction technique in Scotland in October, which has been effected through a new planning policy of "no support". That came after a two-year moratorium on fracking which INEOS says left it out of pocket while the Scottish industry was "in limbo".

"The decision in October was a major blow to Scottish science and its engineering industry, as well as being financially costly to INEOS, other businesses and indeed the nation as a whole," operations director Tom Pickering said.

"It also removed at a stroke the potential for the country in these uncertain times to secure its own indigenous energy supply. We have serious concerns about eh legitimacy of the ban and have therefore applied tot he Court to ask that it review the competency of the decision to introduce it."

The ban was announced amid public opposition to the practice, and was welcomed at the time by groups such as Greenpeace UK and WWF Scotland . However, it also contradicts other expert reports which have concluded that shale gas could be produced safely.

In a statement, INEOS said the decision "also raises an important question about how Scotland does business".

INEOS notes that the 2015 moratorium was announced at a time when it and other shale gas operators - in "reliance on what was then a supportive" planning policy position - had invested millions in acquiring licenses and obtaining permissions. That investment has been "rendered worthless" as a consequence of the ban.

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"INEOS, Reach and other operators have invested significantly in unconventional development over the years, against a supportive regulatory and planning backdrop," Pickering said.

"If Scotland wants to continue to be considered as a serious place to do business, then it cannot simply remove the policy support that attracted that investment in the first place without proper procedures being followed and without the offer of appropriate financial compensaton.

"In light of these failings, INEOS has been left with no option other than to raise this legal challenge."

Responding to the announcement by INEOS, business minister Paul Wheelhouse said: "We have taken a careful and considered approach to arriving at our preferred policy on unconventional oil and gas in Scotland.

"The Scottish Government's position was endorsed by the Scottish Parliament in October, subject to completion of a Strategic Environmental Assessment, and follows detailed assessment of the evidence and consultation with the public."